MD_DA431                                                         
DA                                                               
MD DA431 BUTTER - CENTRAL                             

MADISON, WI.  July 8, 2009 (REPORT 27)
                       
CENTRAL BUTTER:

The cash butter price at the CME Group continues to trend lower 
and remains at $1.1850 at midweek.  This is the lowest cash price 
since early April and compares to $1.5300 last year at this time. 
Churning schedules have dropped off from heavier schedules during 
the past holiday period.  Cream availability to butter producers 
has declined as Class II operations, especially ice cream 
production, have resumed production schedules following the 4th 
of July holiday.  Typically, this is the time of year when cream 
supplies tighten for butter production and ongoing needs are 
filled from reduced fresh production and inventoried stocks.  
Orders this week are slow to develop as many buyers assess their 
inventory situation before re-entering the market place.  On July 
6, the Secretary of Agriculture announced the allocations for 
butterfat of 19,235 MT under the DEIP program for the fiscal year 
of July 2009 - June 2010.  This allocation is the uncommitted 
balance of the 2008 - 2009 allocation of 21,097 MT.  The 
invitation for offers has yet to be issued.  Spot bulk butter 
prices range from 1/2 cent under to 2 cents over various pricing 
basis and averages per pound.    

1500C  steve Schneeberger  (608)250-3204